Significant Accounting Policies:
1. Basis of Preparation of Financial Statement :
The Financial Statements of the Company have been prepared under Historical cost Convention on accrual basis of accounting in accordance with the Generally Accepted Accounting principles (GAAP) in India. These Financial Statements Comply in all material aspects with the Accounting standards (AS) notified under the Companies (Accounting standards) Rules, 2006 (as amended), to the extent applicable, other pronouncement of the Institute of Chartered Accountants of India and are in accordance with the provision of the Companies Act, 2013.
Company's Financial Statements are presented in the Indian Rupees (), which is also its functional currency.
2. Presentation of financial statements:
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 ("the Act"). The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards and the Listing Agreement.
3. Revenue Recognition:
Revenue from Sale of the goods is recognized at the point of dispatch to customers when the significant risk and reward of ownership of the goods have been passed to the customer, it can be reliably measured and it is reasonable to expect ultimate collection and other income are accounted on accrual basis. Sales are net of GST. Government subsidy is recognized on receipt basis on compliance of stipulated conditions as notified under the respective scheme.
4. Property Plant & Equipment:
Property, plant & Equipment's are stated at cost less depreciation. Cost comprises of the purchase price and any attributable cost of bringing the asset to working condition and incidental expenses incurred in relation to their acquisition / bringing the assets for their intended use as intended by the management.
Depreciation:
Depreciation is provided as per Written down Value method in accordance with the rates specified in Schedule II to the Companies Act, 2013, except in case of intangible assets. Depreciation is charged on pro rata basis for assets purchased during the period.
Intangible Assets:
The Intangible Assets are treated as per AS - 26, for the purpose of Amortization.
5. Inventories :
Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Cost is determined using FIFO method.
6. Foreign Currency Transaction :
Transactions denominated in Foreign Currency are recorded at the exchange rates prevailing on the date when the relevant transactions take place. The exchange difference arising there on i.e. Fluctuation Gains/Losses are recognized in the profit and Loss statement. Monetary assets and liabilities denominated, in foreign currency at the Balance sheet date are translated at the year-end rates.
7. Provisions for Current and Deferred Tax:
Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted on the balance sheet date. During the period the company has accumulated for Deferred Tax in Accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. Consequently, the company has recognized in these financial statements the Deferred Tax Assets and has credited the Profit & Loss Account with Deferred Tax Assets relating to the period net of Rs.24.33 (Rs. In Lakhs).
Current tax is measured on the basis of estimated taxable income for the current accounting period in accordance with the provision of the income tax Act, 1961.
8. Provisions, Contingent Liabilities and Contingent Assets:
Provision involving substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. No provision is made for liabilities, which are contingent in nature. If material, the same are disclosed by way of notes to the accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.
9. Investments:
Long Term Investments i.e. (Non-Current investments) are stated at cost. Provision for diminution in the value of Long-Term Investments is made only if such decline is other than temporary. Current investments are valued at cost.
10. Employee Benefits:
(a) Short term employee benefits:
Short term employee benefits are recognized as an expense on accrual basis
(b) Defined Contribution plan:
Contribution payable to recognized provident fund which are defined contribution plan, are recognized as expense in the statement of profit & loss account as they are incurred.
11. Borrowing Costs:
Borrowing costs directly attributable to the acquisition and construction of an asset which takes a substantial period of time to get ready for its intended use, are capitalize as part of the cost of such asset, until such time the asset is substantially ready for it intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred Borrowing costs consist of interest and other costs incurred in connection with borrowing of funds.
12. Leases
In respect of operating leases, lease rentals are recognized as an expense in the Statement of Profit & Loss on an accrual basis over the leased term. In respect of assets obtained on finance leases, assets are recognized at their fair value at the date of acquisition or if lower, at the present value of minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a Finance Lease obligation. The excess of lease payments over the recorded lease obligations are treated as Finance charges which are allocated to each lease term so as to produce a constant rate of charge on the remaining balance of the obligations. The assets are depreciated on the basis of lease period.
Lease payments of Rs 155.81 (Previous year Rs. 160.88) have been recognized as expenses in the statement of profit & loss for the year ended March 31, 2024. Lease are cancellable and current Financial year & future lease payments are shown as below:-
13. AS - 3 Cash flow indirect method is used for preparation for cash flow statement.
14. AS-17 Segment reporting - As the Company's annual report contains both Consolidated and Standalone Financial Statements, segmental information is presented only in the Consolidated Financial Statement.
15. Earnings Per Share (EPS)
The basic and diluted earnings per equity share are computed by dividing the net profit Attributable to the equity shareholders for the period by the weighted average number of Equities shares outstanding during the reporting period. The EPS is calculated as under:
16. Impairment of Financial and Non-Financial Assets
The Company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non-financial assets are impaired. If any such indication exists, the Company estimates the amount of impairment loss. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made. An impairment loss is calculated as the difference between an asset's carrying amount and recoverable amount. Losses are recognised in profit or loss and reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognized impairment loss is reversed through profit or loss.
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